can anyone give details of service taxes imposed by recent Finance Bill on rentals of Commercial Property?

Question

I understand that recent Budget for first time imposes 12 1/2%taxes on rents of Commercial Property from coming Financial Year 2007-2008!
Is this payable by the lessee or the Lessor?
Who has to credit the tax by challans if this has not been specified in lease agreements already existing?
Since this is an indirect tax it seems it has to be paid in addition to Income tax by Lessors who enjoy lease of property and not by the landlord who may have several tenants in a building in a designated Commercial area!
The above points need to be clarified! Can anyone provide answers!

Answer 1

try thins one out www.incometaxindia.gov.in

Answer 2

The service tax is to be paid by the person who is renting the commercial property.He can bill and recover from the tenants.Further, if your billing/income from all the commercial properties/all the taxable services is above Rs.8 Lakh it will be taxable.
Further, the service tax on rent will come into force after Rubber Stamp of President on the Budget sometime in April2007.
Click on the link below for details
http://www.allindiantaxes.com/budget.php

Answer 3

i will anticipate that the domicile is paid for and your duty is merely the valuables taxes? if this is so record for an extension on the taxes and pay your prompt expenses. foodstuff, gas ect. are greater significant suited now. Use the extension to maintain the money to pay the taxes - determine you come across out how lots of a penalty you are able to ought to pay to amplify so which you would be able to save subsequently. this may be a great time to look at your funds - the place are you able to shrink expenses? eating out, cable television, telephone - do you have a land line and a cellular? evaluate giving up the land line. Is you cellular telephone plan too lots? what number minutes are you finding out to purchase and how many do you employ? i replace into finding out to purchase 1000 minutes and somewhat utilising 2 hundred I shrink my plan to 3 hundred minutes and stored like $40 a month. this is in elementary terms some techniques. i might additionally look at commencing a chit expenses account the place each and every pay era you are able to desire to place a splash up so as that on the top of the 12 months there is not any concerns concerning the taxes. i does no longer sell the domicile if all you ought to pay are the each year sources taxes!

Answer 4

If your annually rent crosses above 8 lakhs,then only u are liable for service tax.Service tax is to be collected by you and paid to the government.Income derived from service provided upto to 8 lakhs is totally exempted from paying or charging service tax,from this financial year>2007/2008